Micron Italian Job Cuts Get Global Criticism

Italian unions and the international IndustriALL Global Union have undertaken a series of protests in support of workers for Micron in Italy, which is facing the loss of 419 jobs, or about 40% of the Italian workforce.

Negotiations are taking place between the company and union representatives and up to 100 jobs could be saved, but the terms being offered by Micron are not being received well, a source familiar with talks said. The consultation period, required under Italian law, is due to end April 7, 2014.

The threatened job cuts are the result of a reorganization plan announced internally by Micron in August 2013 intended to reduce Micron's global work force by less than 5% through the end of fiscal 2014. However, the cuts are falling particularly hard on the Italian workforce. Immediately prior to the formation of the internal plan, Micron announced the sale of its wafer fab in Avezzano, Italy, to LFoundry GmbH and Micron has said that one purpose of the reorganization is to align its resources with where it has manufacturing sites and customers.

Italy's FIM, FIOM, and UILM unions organized a series of strikes and protest actions across Italy and Jyrki Raina, general secretary of the IndustriALL Global Union, has written a letter of expressing solidarity with union actions and the Micron workers. IndustriALL is a global union federation founded in 2012 that represents more than 50 million people from 140 countries working in the mining, energy and manufacturing sectors.

The unions are looking for Micron to cancel or reduce the job cuts and for support from STMicroelectronics NV, where many of the workers were employed before their jobs were moved to Numonyx NV and then to Micron. Workers are also saying that European Commission funds that are used to stimulate collaborative R&D projects should be used to save the jobs of the Micron Italy workers.

The message from IndustriALL to the general secretaries of the FIM, FIOM, and UILM unions, dated March 19, said:

We deplore the company's intransigent stance in implementing a restructuring plan, without any consultation with the unions, which involves redundancies. In addition, we find it unacceptable that the company is not even considering an alternative to the restructuring plan.

Up to 100 positions could be saved through relocating those jobs, according to a source, who communicated with EE Times Europe on condition of anonymity. However, the union finds the terms unacceptable because at least half the job relocations would be abroad Germany, Singapore, or the United States, and Micron is insisting that they would be without salary adjustment, the source said.

Micron is offering up to 18 months' salary as severance pay, but this is not finding favor with the union, the source said. This is because severance in Italy has always been substantially higher, typically twice as much, the source said.

Finally, Micron is holding out the carrot of $20 million of investment in Italy over the next two years subject to the results of the lay-off negotiations, the source said. The source added that the union has reacted angrily to this proposal.

A meeting between company, unions, and government is scheduled for April 1, the source said.

Cf the article below. The Italian govt is now saying that STM should take responsibility for the 419 researchers that Micron wants to lay off, since the problem originated with them.

The Italian government is calling in STMicroelectronics to take responsibility for the 419 researchers which Micron Technology of Idaho is trying to sack in Italy. Micron wants to sack 40% of its Italian workforce. as part of a 5% global workforce reduction.

A meeting will be held in Rome on April 1st at the Italian Ministry of Labour at which ST may be forced to accept responsibility for the situation which started back in 2007 when ST decided to exit the flash memory business by putting its memory operation into the Numonyx joint venture with Intel.
- See more at: http://www.electronicsweekly.com/news/business/responsibility-sacked-micron-workers-falls-st-2014-03/#sthash.CNz2LVL7.uAMyd5Gu.dpuf

man, u cant even afford 500 e home loan , that's truely sad. but could u extend your vision to china and lend a hand to the also abused chinese workers who are treated like slaves, their most basic right of switchinf job has been violated.by signing such monopoly treaty. most chinese workers are iliterate and dont know how to express(that's why commis exists).
its sad and a shame if the intl EE community turn a blind eye to such activity. even for you. please forward this information to the tech writers you know and show your stand. you r truely a man of judgement and moral instead of just some cold blood selfish whining for your own loss.
to verify such info is easy, just call any of samsung 's hunters.
junko, r u rdy to chime in as well?

Very good analysis, I agree almost on everything.
About PCM to be developed/produced in Boise: time will say whether this has been a good choice: PCM projects are now stopped for Tech problems. My opinion is that Micron "core" (Boise) is not equipped to develop critical Technologies and Products, maily for its big push to production and limit to R&D role.

Good question, but it could be reversed: why did Micron base its 2010 industrial plan on the acquisition of a NOR memory maker as Numonys (except the research-level PCM Tech), resulting in the great success that we know? NOR market is maybe dying, but still remunerative, especially in the Automotive sector.

About the "warrants": after 27 years at STM etc. I will gain an unemployment salary of monthly ~800e (after tax) for 3 years.... Considering I'm paying ~500e monthly for my home lone, you can now be aware of what's an italian unemployment "warranty".

However, they were foreseeable and will not be the last. When an overall job cut of less than 5% reduction results in 40% reduction in Italy, the future is more or less clear...

And why should Micron do R&E for PCM in Agreate instead of Boise?

Obviously the European memory strategy was not the best. ST first cooperated with Hynix until they learned to do chip design by their own. Then the merger with the NOR flash business of Intel to form Numonyx. These steps were all in contradiction to sustainable conservation of a semiconductor memory business and knowledge in Europe.

A merger/collaboration with the Infineon/Qimonda momory part and real subventions and backup from Brussels would have been the right steps in 2005-2007.

Memory devolopment in Europe is a phase-out model for a least five years now!

micron's facility in xi'an china recently signed an agreement with local samsung in which samsung will not hire any employee from micron xian. this is truely innovative and abused the right of chinese workers.
although americans critisize the chinese govt for humanright records but they never hesitite if they could take advantage by themselves.